A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $56.86 for two-and-a-half years. The first payment is due on the date of sale and interest is 22% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $9.00 per month is added to cover a service contract, what is the value of the entire contract on the date of sale?
A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $56.86 for two-and-a-half years. The first payment is due on the date of sale and interest is 22% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $9.00 per month is added to cover a service contract, what is the value of the entire contract on the date of sale?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $56.86 for two-and-a-half
years. The first payment is due on the date of sale and interest is 22% compounded monthly.
years. The first payment is due on the date of sale and interest is 22% compounded monthly.
(a) What is the purchase price?
(b) How much will be paid in installments?
(c) How much is the cost of financing?
(d) If an additional $9.00 per month is added to cover a service contract, what is the value of the entire contract on the date of sale?
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